| Pump
and Dump |
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A
highly illegal practice occurring mainly on the Internet whereby a
small group of informed people buy a stock before they recommend it
to thousands of investors. The result is a quick spike in the price
followed by an equally as quick downfall. The people who have bought
the stock early selloff their stocks when the price peaks.
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Many
pump and dump sites tend to recommend companies that are OTC
and have a small float. The small float means more volatility.
It is virtually impossible to make money from these web sites unless
you are the proprietor...the SEC eventually busts all of them. |
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Dictionary
